If you search online for how to apply for bankruptcy, you will quickly find no shortage of conflicting advice.
Some websites suggest it is expensive. Others imply you must go through an intermediary. A few make the process sound deliberately complex.
In reality, applying for bankruptcy in Australia is far more straightforward than many people realise.
An individual can apply for their own bankruptcy directly through the Australian Financial Security Authority website (afsa.gov.au). The application is completed online, it is free, and it does not require a lawyer, accountant, or paid service provider.
That fact alone surprises many people.
The bankruptcy application via the AFSA website is completed using an online form. You will be asked to provide details about your recent financial history, assets, debts, income, and to complete relevant identity checks. The form is detailed, but it is designed to be completed by individuals, not professionals. There is guidance built into the system, and you can save your progress and return to it if needed.
Despite this, many commercial websites offer to apply for bankruptcy on your behalf for a fee. Some charge hundreds or even thousands of dollars for what is, in substance, the completion of the same online form. Some people may find these services helpful if they feel overwhelmed, but they are not required. Paying an intermediary does not change the outcome, speed, or legal effect of the bankruptcy.
Once an application is accepted, a trustee is appointed to administer the bankruptcy. In more straightforward cases, the default appointment is the Official Trustee, a government trustee.
It is also possible to appoint a private registered trustee, such as Worrells, instead of the Official Trustee. This is optional, not mandatory. There are, however, many situations where a private trustee adds real value. This can include cases involving business interests, more complex financial affairs, assets to be realised, or circumstances where a higher level of engagement, communication, and practical support is important. Where a private trustee like Worrells is appointed, assistance with the bankruptcy application and guidance throughout the process is provided as part of the engagement.
Advice is a separate issue. While you do not need professional assistance to lodge a bankruptcy application, bankruptcy has serious legal and financial consequences. Understanding your options, obligations, and alternatives before proceeding can make a meaningful difference. This advice can be obtained from reliable sources such as the AFSA website or from an experienced registered trustee like us at Worrells, who can provide clear, practical guidance tailored to your circumstances. You can also refer to our bankruptcy factsheets here.
If you have decided to proceed, it is worth knowing that you can apply yourself, online for free. If you would prefer informed advice, a supported process, and a trustee who will actively engage with you as the matter progresses, speaking with our office can provide clarity and reassurance at an important time.
